As Zee eyes ₹2,237 crore boost, Subhash Chandra dismisses loans and pledges amid governance push

Zee Entertainment Enterprises Limited (ZEEL) Chairman Emeritus Subhash Chandra on July 3 clarified that the promoter group will neither raise debt nor pledge shares to finance the proposed ₹2,237 crore fund infusion into the company through warrants.

Chandra made the comments during a call exceeding 90 minutes with analysts and investors, which ZEEL described as part of its ongoing efforts to enhance corporate governance and shareholder engagement.

“No, we are not taking any loans, nor are we pledging any shares. The funds being utilised are our own — they are recoveries from promoter-linked entities, which have come back to us,” Chandra told analysts and shareholders.

The promoter group’s planned investment has drawn scrutiny from proxy-advisory firms, as it would raise the shareholding of Punit Goenka and his family from 3.99 percent to 18.39 percent. ZEEL shareholders are scheduled to vote on the special resolution between July 6 and July 9.

ZEEL is set to receive ₹2,237.4 crore through a preferential allotment of fully convertible warrants, with the company proposing to issue 16.95 crore warrants at ₹132 each, subject to shareholder approval.

The company stated that this capital infusion is part of a broader strategy to strengthen its financial base and drive long-term growth, particularly in content innovation and digital infrastructure. Management believes the fresh capital will help stabilise the balance sheet and support new initiatives in India’s evolving entertainment sector, including digital-first content and platform investments aimed at creating shareholder value.

Chandra acknowledged ZEEL’s existing cash reserves of around ₹2,400 crore but stressed the need for additional capital to remain competitive.

According to reports, Chandra does not intend to wait the full 18-month period allowed to bring in the warrant funds, aiming instead to infuse the entire amount as early as possible. Under the warrant terms, 25 percent of the funds are payable upfront, with the remaining 75 percent due within 18 months.